State Rep. Lundy Kiger asks Gov. Stitt to loan money to help rural hospitals stay open

POTEAU, Okla. (KOKH)--Rural hospitals have suspended many of their services because of the coronavirus.

On Tuesday, State. Rep. Lundy Kiger (R-Poteau) asked Gov. Kevin Stitt to do more for the rural hospitals during this trying time.

“We appreciate the governor recognizing the fact that closing elective surgeries reduced hospital revenues approximately 80 percent, which no business can afford," said Kiger. "The cost of these services just to try and keep the doors open at the Eastern Oklahoma Medical Center (EOMC) in LeFlore County resulted in a temporary reduction of hospital staff by more than 50 people between the surgical department, OB and clinic staff. In comparison to many rural hospitals that are now broke or about to close their doors, the administration at EOMC led by CEO Bob Carter has taken many important steps in preparing for a downturn because this is the way of life for most rural hospitals.”

EOMC is a critical access hospital, Kiger said, and is the gatekeeper and the last facility in southeast Oklahoma helping to keep Oklahoma Medicaid dollars in the state.

Even when the EOMC is fully operational, about $9 million goes to Arkansas, according to Kiger.

Now that the OB and surgery are closed, the hospital is expected to lose another $3 million annually.

In total, the EOMC will lose $12 million to Arkansas, and that is a similar situation happening to facilities across the southern border of Oklahoma, with money going into Texas.

The EOMC was able to receive the Paycheck Protection Program loan, which resulted in a pre-payment of Medicare that will have to be paid back starting 120 days from receiving the funds.

"With the amount of Medicaid dollars going out of state to Arkansas of approximately $12 million annually in the example with EOMC, all other rural hospitals located near our state's borders are also bleeding millions of Oklahoma dollars to the benefit of out-of-state health care providers that we need to consider,” Kiger said

Kiger is asking the state of Oklahoma and Gov. Stitt to look beyond big cities like Tulsa and Oklahoma City, and begin to look more at rural hospitals.

“The state of Oklahoma and Gov. Stitt have to look beyond the lights of Oklahoma City and Tulsa and realize that half of Oklahoma's population lives in rural Oklahoma,” Kiger continued. “We have the same needs for health care as those living in urban Oklahoma. There must be a comprehensive look by the governor and the Oklahoma Hospital Association at geographic locations of rural hospitals in the state, and especially rural hospitals still open near our state's borders. They need to make a determination of the real need of additional funding for our rural hospitals to remain open during this pandemic and beyond."

Kiger is asking the the governor to consider providing $6 million to EOMC from the TSET fund, which Kiger says the EOMC and other rural hospitals would pay back with interest.

Kiger says they could use the loan to overcome the pandemic and reopen surgery and OB and give people who have been laid off their jobs back.

According to Kiger, 28 rural hospitals in the state are at risk of closing down, and if nothing is done, they could shut down in months.